IL&FS and Milestone invest $28m in Pune office tower

The investment in The Cerebrum was made through the IL&FS Milestone Fund I, a partnership between IL&FS and financial services group Milestone.

IL&FS Investment Managers, the private equity division of finance company Infrastructure Leasing & Financial Services, has invested INR 1.39 billion ($26.8 million; €21.2 million) into the second property of a three-tower technology Park in Pune, India.

The property, called The Cerebrum, was acquired through the IL&FS Milestone Fund I, an India-focused private equity real estate fund launched by IL&FS and financial group Milestone Capital Advisors to invest in leased or rented properties. The fund is reportedly raising $1 billion.

The 300,000 sqqure foot Cerebrum B2 is leased to companies including Reliance Communications, Vodafone Cellular, Finserv and Redknee India Technologies.

Construction of the third tower is underway and when completed, the one million square foot project will be the largest technology Park in Pune, according to developer, Kumar Builders.

Earlier this month, IL&FS raised $895 million for its second real estate fund, the India Real Estate Fund II. The vehicle's original target was $750 million.

IL&FS Investment Managers currently manages more than $1.9 billion in assets.